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- The Bank of Canada and the Massachusetts Institute of Technology (MIT) are collaborating on Central Bank Digital Currency (CBDC) research.
- The research will be conducted on a twelve-month basis, after which the Bank of Canada will provide details regarding the outcomes and findings of the research project.
- Earlier in the month, it was reported that the Philippines and Brazil are also continuing their research on CBDC.
The central bank of Canada and the Massachusetts Institute of Technology (MIT) have decided to be partners on Central Bank Digital Currency (CBDC) research.
CBDCs are often misunderstood as cryptocurrencies, in contrast, they are regulated by central bank authorities and are a digital form of a country’s fiat currency.
The agreement was disclosed through a press release, according to which the central bank of Canada will work with MIT’s Digital Currency Initiative to expand on its on-going CBDCs research on a twelve-month basis. The Bank of Canada revealed that once this period is over, it will be providing updates on the findings and outcomes of the research project.
The CBDC emphasized that there is no official decision made to introduce a CBDC in Canada, however, the main focus of the centralized bank will be how this form of digital currency will work in the scenario of the country.
The collaboration is announced at a time when continuous research and development is going on in the field. Last week, as reported last week, Biden’s executive order on digital assets came which emphasized that the US Federal Reserve carry on with its research into a CBDC. In the past also, MIT has also worked with the Boston branch of the Fed on CBDC research.
Meanwhile, according to the reports early in the month, both Brazil and the Philippines are continuing with their research of CBDC.
Moreover, this is not the first time that MIT DCI is collaborating with a bank for CBDC research. At the start of February, MIT published research on the topic in partnership with The Federal Reserve Bank of Boston.
The research was named “Project Hamilton,” using two potential models, it conducted a test on “hypothetical general purpose CBDC.” Instead of depending on a single ordering server to prevent double-spending, it utilized distributed ledger technology (DLT) and processing transactions in parallel on multiple computers.
Rich Checkan has described CBDCs as being “concocted in hell by Satan himself” while Edward Snowden warned about the ramification for freedom and privacy.
President Joe Biden’s crypto order on ensuring Responsible Development of Digital Assets highlights that his administration will be prioritizing the research and development efforts into the U.S.-based CBDC “potential design and deployment options.”
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
